Terra (LUNA) posted its latest all -time high (ATH), $ 82.56 early this morning before declining and trading at $ 80.70 at the time of this writing.
This modest decline may be related to recent developments involving the crisis between Terraform Labs and the Securities and Exchange Commission (SEC).
What happen?
For the record, just as Ripple faced, Terraform Labs also faces an SEC grip accusing them of violating asset trading-related laws.
December 2020
Terraform Labs has launched a decentralized financial platform (DeFi), Mirror Protocol.
Through this platform, users can generate and trade stock tokens (mirrored assets) or known as mAssets.
The price for these stock tokens is based on the actual stock price, which also includes major stocks traded on the United States (US) exchange.
May 7, 2021
SEC opens investigation to determine whether Terraform Labs has violated the law by allowing the production and trading of synthetic stocks or not
15 September
The SEC did not find any evidence confirming the misconduct of the entity. But claiming the investigation can only be resolved with enforcement action.
17 September
The SEC has confirmed two subpoenas - one for Kwon and another for Terraform Labs.
One of them was handed over to Kwon on September 20 during the Mainnet 2021 conference held in New York City.
October 22
Kwon filed the same against the supervisory agency, alleging that they had carried out their duties carelessly, as well as urging the court to quash the subpoena and end the investigation.
It is clear that Kwon submitted the subpoena without any explanation and his party only realized that it was a subpoena after reading the situation on Twitter.
12 November
The SEC has denied Kwon’s allegations and made an application to the court, urging for Kwon and Terraform Labs to comply with the subpoena order.
This means Kwon will have to appear to testify at the SEC headquarters in Washington, along with the necessary documents.
December 17
Kwon and Terraform Labs denied the SEC's confession and asked the court to drop them.
Now the SEC is given a period until Dec. 24 to clarify the overall situation. At the same time, the SEC needs to respond to the same civil Kwon and Terraform Labs by Dec. 27.
Anyway, the unusual LUNA movement of late is driven by the rising demand for TerraUSD (UST). When there is a high demand for UST, LUNA burning will occur at a higher rate.
This explains why LUNA is getting more expensive.
